African oil and gas companies should consider re-examining their business assumptions and invest for long-term sustainability owing to rising energy prices, says facilities management services company IFS Africa CEO Thabo Ndlela.

“There is room for efficiency improvement in ongoing oil and gas projects with better information systems and coordination of activities,” he notes, adding that companies can also improve efficiencies in asset maintenance and rein in their compliance costs.

Ndlela highlights that there are information technology systems that provide real-time visibility into projects, maintenance and compliance, which are key to streamlining operations across the value chain.

However, the oil and gas industry is coming off a very low base with minimal investments in technology, he says. “Part of the issue is structural, as the industry typically operates in a ‘siloed’ fashion with different business units and contracting firms operating independently.”

This being the case, Ndlela avers that companies that are prepared to invest in the value chain – finding ways to work smarter and more cost effectively – will be able to improve margins.

For instance, investing in real-time visibility will assist in capturing and consolidating financial and operational information into a single system in real time. This will also help identify processes that can be made more efficient.

”Oil and gas producers can also implement supplier portals so that services companies can see all the information they need to efficiently do the job and coordinate with other suppliers,” he explains.

Moreover, Ndlela notes that mobile apps can also be used to make the business more efficient. This is because modern enterprise software makes it easier to access information and report back through mobile apps running on a phone, tablet or phablet.

Also, establishing simple metrics and alerts around performance, cost and compliance and monitoring them in real time through graphical dashboards that responsible managers can see are also ideal for efficiency.

Ndlela mentions that deploying all these mechanisms in an oil and gas company creates a free flow of information, which can be shared with concerned parties such as regulators and the government. This will allow companies to establish and maintain trust with these stakeholders.